In July 2022, the government announced a new pay framework offering wage increases for healthcare professionals, including nursing staff, in response to growing recruitment and retention pressures. Registered nurses received an average annual salary increase of 3.0%. While the department stated this award reflected the invaluable contribution of healthcare staff, trade unions argued that the increase failed to compensate for the systematic erosion of real pay experienced by public sector workers since the introduction of fiscal consolidation measures in 2012.
Union representatives highlighted that inflation was significantly outpacing pay awards, further depressing living standards. The Treasury cautioned that future pay settlements must remain "fiscally sustainable" as the government prioritises reducing national debt. Fig. 1.1 tracks the movement of nominal wages and the price level over the decade following the 2012 reforms.
Fig. 1.1 – Mean NHS Nursing Salaries & Consumer Price Index 2012–2022
| Year | Mean Annual Nursing Salary | Consumer Price Index (2012 = 100) |
|---|---|---|
| 2012 | £30,500 | 100.0 |
| 2013 | £31,100 | 102.6 |
| 2014 | £31,400 | 104.1 |
| 2015 | £31,600 | 104.1 |
| 2016 | £32,100 | 105.4 |
| 2017 | £32,800 | 108.1 |
| 2018 | £33,600 | 110.8 |
| 2019 | £34,300 | 112.8 |
| 2020 | £35,200 | 113.8 |
| 2021 | £36,100 | 116.7 |
| 2022 | £37,000 | 126.1 |
Using the data in Fig. 1.1, explain what happened to average nursing salaries after 2015.
